Auto insurance rates in Michigan

Auto insurance rates are high in Michigan, but there may be hope for the state to lower the costs, according to Free Press. Currently people can spend $4,000 a year on auto insurance in Detroit. Michigan is the only state that mandates unlimited lifetime medical benefits for those injured in auto accidents. Legislators have introduced two bills - one that would allow drivers to take a minimum $250,000 of personal injury protection. Policy holders could still choose unlimited coverage. The other bill would create a fee schedule for auto insurers paying for medical treatments. New York currently provides the second highest minimum PIP coverage at $50,000. If legislators can approve these bills, drivers in Michigan will likely have lower rates.

It always seems to me, the fewer the mandates required, the healthier the insurance market is in general. People have free choice, insurance costs less. Everybody wins. When you compare states with more mandates compared to states with fewer mandates there is a rather large difference in the costs of the policies. Every state has the right to have unique laws on insurance, but if affordability suffers as a result, they should be less different than their neighbor states. I think the bills proposed will be good for Michigan.